T    Medical Insurance Coverage and Premiums

 

 

 

Revised 06/04/2021

 

Policy

Medicaid is the payer of last resort.  The customer must provide current information about any medical insurance coverage or premium amounts.  This information allows the appropriate carrier to be billed.

In some cases, changes in medical coverage or premium amounts may affect a customer’s eligibility or Share of Cost (SOC):

When the program is...

Then...

ALTCS

ALTCS - Freedom to Work

Changes in the customer’s medical insurance premium amounts may affect the customer’s SOC for ALTCS services (MA1201C).

Adult

When a parent or other relative is living with a child and is the child’s main caretaker, the child must have minimum essential coverage for the person to qualify for the Adult group (MA518).

Breast and Cervical Cancer Treatment Program (BCCTP)

A customer is no longer eligible for BCCTP when she has creditable health insurance coverage, unless she qualifies for an exception (MA515).

KidsCare

A customer is no longer eligible for KidsCare when he or she has creditable health insurance coverage (MA515). 

NOTE          When a person chooses to end a child’s creditable health insurance coverage, the child cannot qualify for KidsCare for 90 days.  The 90 days begins the day after the creditable coverage ends unless the customer meets an exception.  (MA516)

 

See Processing Changes in Medical Insurance Coverage or Premiums for details.

Definitions

 

Term

Definition

Creditable Coverage

Health insurance coverage as defined under the Health Insurance Portability and Accountability Act (HIPAA).

Examples of creditable coverage include:

·        Medicare;

·        Group health plans including Qualified Health Plans;

·        Health insurance coverage through a hospital or medical service policy, certificate or plan contract; or

·        Armed forces insurance (i.e., TriCare).

Non-Creditable Coverage

The following types of policies are considered non-creditable coverage:

·        Coverage only for accidents (including accidental death and dismemberment);

·        Liability insurance, including general liability and automobile liability insurance;

·        Free medical clinics at a work site;

·        Benefits with limited scope such as dental benefits, vision benefits or long term care benefits;

·        Coverage for a specific disease or illness (including cancer policies);

·        Insurance that pays a set amount a day when the person is hospitalized or unable to work.

Minimum Essential Coverage

Means any of the following kinds of health insurance coverage:

·        Full AHCCCS Medical Assistance benefits;

·        Medicare Part A;

·        TriCare for Life;

·        Veterans health program;

·        Government health plan for Peace Corps volunteers;

·        Group and Individual health plans, including Qualified Health Plans purchased on the Federally Facilitated Marketplace;

·        Employer-sponsored coverage; or

·        Other health benefits coverage, such as a State health benefits risk pool.

Minimum Essential Coverage does NOT include:

·        Coverage only for accident or disability income insurance;

·        Liability insurance, including general liability insurance and automobile liability insurance;

·        Workers’ compensation or similar insurance;

·        Automobile medical payment insurance;

·        Coverage for on-site medical clinics;

·        Dental- or vision-only benefits;

·        Coverage only for long-term care services;

·        Coverage only for a specified disease or illness; or

·        Hospital indemnity or other fixed indemnity insurance.

 

Proof

Proof of new insurance coverage includes:

·         Insurance contract;

·         Copy of both sides of the insurance card;

·         Telephone contact to the insurer to confirm the details of the coverage.

Proof that insurance coverage has ended includes:

·         Letter or written statement from the insurer confirming the coverage end date;

·         Telephone contact to the insurer confirming the coverage end date;

·         Telephone contact to the previous employer to confirm the coverage end date for employer-sponsored insurance.

Proof of a change in premium amount includes:

·         Letter or written statement from the insurer with the new premium amount and effective date;

·         Telephone call to the insurer confirming the new premium amount and effective date;

·         When the customer is no longer paying the premium or someone else is paying the premium, the customer’s statement is accepted.  No further proof is needed.

 

Programs Affected

This applies to all programs.

 

Timeframes

Changes must be reported as soon as the future event becomes known.  Unanticipated changes must be reported within 10 calendar days of the date the change occurred.

Use the following table to determine the effective date for the change.

If the change results in... Then the effective date of the change is...
A decrease in the ALTCS Share of Cost

The later of the first day of the month in which the change:

·        Took place; or

·        Was reported to AHCCCS.

·        An increase in the ALTCS Share of Cost; or

·        Loss of eligibility

The first day of the month after the change that allows for adverse action rules.

 

 

Legal Authority

Program

Legal Authorities

ALTCS

FTW-ALTCS

42 CFR 435.725(c)(4)(i)

42 CFR 435.726(c)(4)(i)

42 CFR 435.916

AAC R9-28-410(C)

AAC R9-28-411(A)(1)

Breast and Cervical Cancer Treatment Program (BCCTP)

42 CFR 435.916

ARS 36-2901.05

AAC R9-22-2003(A)(5)

AAC R9-22-2005(D)(1)

Adult

42 CFR 435.916

42 CFR 435.119(c)

KidsCare

42 CFR 457.310(b)(2)(ii)

ARS 36-2983(G)(2)

AAC R9-31-303